As part of the process, the agent sends you a signed insurance application containing information concerning the insured customer's business. You had absolutely no involvement in preparing the insurance application. As a wholesale broker, you relay the application to various insurers in an attempt to find the right coverage for the agent's customer. An insurer contacts you in response to the application and gives you authorization to provide a quotation to the retail agent. In turn, the retail agent relays the quotation to his customer, who agrees to accept coverage.

During the transaction and term of the policy, you acted as an intermediary between the retail agent and the insurer, nothing more. You never provided any advice to the insured customer nor did you have a contract, either oral or written, with the insured customer. In fact, nobody associated with your company ever had any contact or communication with the insured customer. You never instructed the retail agent on how to operate his business nor did you have any right to control the retail agent's operations. Likewise, the retail agent had no right to, and did not, control your business operations. More importantly, you never provided the retail agent with any authority to cause the insured customer to believe that his agent had the authority to act on your behalf. 

Fast forward several months. You arrive home from a busy day at the office and want to relax. The doorbell rings and you open the door only to find a stranger dressed like a deliveryman. The man states your name and asks if you reside at the location. "Yes," you reply. The man then hands you a pile of papers and proclaims, "You have been served." You read through the mess of papers to find that the insured customer has filed a lawsuit against you and his retail agent for negligent procurement of insurance, breach of fiduciary duty, and breach of contract.